Investments by 13 firms in protected forests to reach $17 billion
Saturday, July 17 2004 - 02:21 AM WIB
The investment commitments by the 13 mining firms last year reached US$17 billion, the Investor Daily quoted Director General of Geology and Mineral Resources Simon Felix Sembiring as saying on Friday.
Simon said that if realized, the investment plan could contribute $400 million per month to the state coffer.
The House of Representatives endorsed Thursday a controversial government regulation that allows the mining firms to resume operations in protected forests.
Simon said the concern expressed by several sections of the society that continuation of mining operations by the above 13 companies will have negative effect on the environment should not be exaggerated.
Besides the potential investment of $17 billion and $400 million monthly income for the state, the new regulation will help the development of areas, where these 13 mining companies are located, Simon said.
However, Simon said both the government and mining companies must pay attention to the environment.
?The issue of environment has become our concern too,? he said.
Meanwhile Antara reported that Minister of Forestry M. Prakosa was happy with the House's decision because it had finally put an end to protracted disputes between the government and several mining firms whose operations had to be halted following the enactment of Law No. 41/1999 on forestry.
"This decision is in line with government's plan to ensure legal certainty in the mining sector, which has been in limbo for years ... We are happy with the result," said Prakosa after a plenary session on Thursday.
The government had drafted the regulation in March to allow the mining firms in question to resume their operations in protected forests. The regulation was introduced to the House one month before the legislative elections. (*)